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Hampton-Alexander Review
FTSE Women Leaders
Improving gender balance in FTSE Leadership
November 2019
Sponsored by
For over a decade McKinsey research has
supported the economic, business and
societal case for gender parity. In 2019,
our dataset continues to show a significant
link between diversity and financial
performance, with companies in the
top quartile for executive team diversity
15-24% more likely to outperform their
national industry median EBIT margin than
their bottom quartile peers.
Whilst progress on representation
is perceptible, the pace of change
remains disappointing. There is a need
for far bolder action to make leaders
accountable for participation, advance
women into senior and technical roles,
and tackle obstacles in the way of building
truly inclusive, agile organisations.
Vivian Hunt DBE
Managing Partner, UK and Ireland
McKinsey & Company
2
Contents
Forewords 4
Executive Summary 8
1. Executive Committee and Direct Reports
FTSE 100 Progress 10
FTSE 250 Progress 15
Leading by Example 20
Experiences of Workplace Culture 24
2. Women on Boards
FTSE 100 Progress 28
FTSE 250 Progress 30
FTSE Board Stories 34
UK Progress Compared Internationally 38
3. Stakeholders
Executive Search Firms 40
Investor Community 42
The UK Diversity Landscape for Business 44
Closing Word from Chris Cummings 46
Thanks to our Contributors during the Year 47
Appendices
A – FTSE 350 Women on Boards 9 Year Analysis 48
B – FTSE 350 Women in Leadership 4 Year Analysis 49
C – FTSE 100 Rankings Women on Boards and in Leadership 50
D – FTSE 250 Rankings Women on Boards and in Leadership 54
E – FTSE 350 Sector Analysis 64
Further Reading 78
@HA_Review
www.ftsewomenleaders.com
3
Joint Foreword
Alex Chisholm John Manzoni
Permanent Secretary, Department for Business Chief Executive of the Civil Service and
Energy & Industrial Strategy Permanent Secretary for the Cabinet Office
We thank Sir Philip Hampton, Denise Wilson and the Review team for all their efforts this
year and for producing once again such a comprehensive and authoritative report. As the
Hampton-Alexander Review enters its final year there has been some notable progress made
by companies towards meeting the Review’s 33% targets for women in senior leadership
positions in the FTSE350 by the end of 2020. With respect to women’s representation on
boards, we have passed the 30% point across the FTSE350, and most encouragingly for this
past year, progress has been predominantly driven by the FTSE250 where the appointment
rate of women has increased strongly.
These are positive trends. There are now only two FTSE350 boards made up of only men
and forty-two that have only one woman on their board. The equivalent figures going back
to 2011 look shocking now and the excuses that circulated about the difficulties around
achieving more diverse business leadership can now be dismissed by the evidence that real
change can come about where there is the conviction. There is of course a lot more still to be
done.
Our departments have worked across a number of initiatives, including through the Industrial
Strategy to support companies to achieve more balanced leadership. Over 10,000 employers
now report their gender pay gap each year providing for significant new transparency and
pushing employers to take real action to close the gap. The Women’s Business Council has
been refreshed to focus on the sectors where the biggest change is needed to close the
gender pay gap and improve women’s representation. A new Men as Change Agents board
has also been launched which will lend support to both the Hampton-Alexander and Parker
Reviews.
Advancing diversity in business leadership is at the heart of BEIS and Government Equalities
Office priorities, just as we want the Civil Service to reflect the diversity of the communities
we serve. The Civil Service is at its best when it reflects the diversity of the country as a
whole and is able to understand what the public needs. The Civil Service Diversity and
Inclusion Strategy set out our aim to become the most inclusive employer in the UK by 2020.
The strategy builds on the significant advances we have already made. This is a broader
agenda and shared endeavour for the Civil Service, the Financial Reporting Council, the UK’s
corporate leadership and the investment community, as well as great business-led initiatives,
of which the Hampton-Alexander Review is an excellent example.
4
Hampton-Alexander Welcome
Sir Philip Hampton
Chair
Hampton-Alexander Review
This is the fourth Hampton-Alexander Report. Although it is formally set up as a Government
Review and is firmly backed by the UK Government, its effectiveness is ultimately determined
by the efforts of business leaders to change the gender balance in boardrooms and in senior
executive teams.
It’s therefore encouraging to see that progress is being made in boardrooms and among top
executives. Women have waited a long time for these opportunities. The much-missed Helen
Alexander used to say quite pointedly that women had waited for the whole of recorded
history to be able to realise some basic ambitions. Those opportunities are now there and
they continue to grow.
In terms of Women on Boards, the last year has seen the strongest progress we have seen
and if this is sustained over the next year or so, the targets set in 2016 can be met. The FTSE
100 is almost at one-third women directors, the FTSE 250 has improved markedly and not
far behind. It is often hard to identify cause and effect in this area but the efforts we made in
conjunction with the Investment Association early in 2019 to challenge those boards with only
one woman director do seem to have paid off. Around 35 of those companies have added at
least one woman to their boards in the last six months.
I’ve said since the start that whilst Women on Boards is a critical indicator of the acceptance
of women at the top table in business, the strength of representation of women in top
executive positions is the surest way of sustaining an improved gender balance. This is taking
longer but again there is clear evidence of progress. There are now 5764 women in what we
call senior leadership in FTSE 350 listed companies. It is becoming increasingly rare to see
All-Male Executive teams in the top ranks of large businesses, whereas it was commonplace
until relatively recently.
Therefore in overall terms this has been a good year. We shouldn’t forget, however, that
women are starting from low numbers in many areas and there are some elements of the data
that seem harder to shift. The top job in the boardroom, the Chair, is still overwhelmingly
occupied by a man, and that’s even more the case with CEOs at the executive level. We have
built a strong foundation and I would expect the low percentage of women in these roles to
improve significantly in the coming years.
My thanks again are due to the Ministers and hard-working officials at BEIS and the
Government Equalities Office for their help and support, especially in these challenging
political times. KPMG have provided considerable support to the Review, doing all we
have asked which is greatly appreciated. This year we welcomed Lucinda Longmore on
secondment, with thanks to Lloyds Banking Group and the Steering Group and Advisory
Panel continue to offer support, guidance and challenge and have been generous with their
time. Finally, I’d like to thank Denise Wilson, who has an unmatched understanding of the
work of this Review and whose dedication is outstanding.
5
Word from our Sponsors
Melanie Richards CBE
Deputy Chair
KPMG
Four years have passed since the Hampton Alexander Review was launched and it is fair to
say – the dial has moved in the right direction. Change is happening, and when we view this
change in the context of our start point, it is clear to see that both the FTSE100 and FTSE 250
are taking up the call to arms.
But it is undeniable that there is more to do to achieve true equality which will require a
redoubling of our efforts. There are some stand out performers but there is evidently much
more for some to do. Focusing on areas where the pace of change is slow, we must work
even harder to maintain and generate further momentum. It is vital that the progress the
Review has achieved translates into transformation in the future, motivating leaders to learn
from the example of others and to push for even faster progress.
This will require systematic focus on all aspects of recruitment, retention and promotion. To
truly address a lack of diversity at the top we must look at every stage of the talent pipeline.
Sustainability and longevity of these changes are essential and to that end, the progression of
women remains key. This combined with an emphasis on creating an inclusive environment in
which all talent can thrive, leadership stereotypes are challenged and individuals are valued
for their skills and capabilities.
The Review is data driven, the targets and measures of success are largely reported in the
numbers. But we should not lose sight of the fact that behind these numbers and trends
are hundreds of individual stories. There are women who have risen to the top – perhaps
overcoming barriers that they should not have had to overcome – with leaders and boards
who have worked hard to remove those barriers for current and future generations. The
business community should celebrate these stories of success as it is only by sharing and
understanding how change is made that we can achieve our collective ambition.
6
The Steering Group
The Steering Group meets four times a year and is made up of senior business
representatives, all passionate and committed to the cause of advancing women and
diversity in British business. We are responsible for determining the strategic framework,
monitoring and reporting on progress and influencing stakeholders. We are fortunate to
have the support of Government, an advisory panel of senior business advisers and very
many corporate and individual supporters.
Sir Philip Hampton
Chair
Denise Wilson OBE
Chief Executive
“Progress comes in many forms. This year it is boards
and leadership teams realising that “One & Done” is
really little better - than none.”
Charles Berry
"There is great strength in diversity and we must do all
we can to harness it fully. This is always important, but
particularly in these times of uncertainty and volatility
in the business environment".
Fiona Cannon OBE
"The efforts of FTSE companies in recent years
has created the strongest-ever pipeline of talented
women ready to take up senior leadership roles, with
many already serving at the highest levels in British
business. There is room to go much further."
Andrew Duff
"Although pleasing, achievements so far are just
starting to change the climate in the boardroom.
Further progress is needed for them to become
fully self-sustaining".
Alison Platt CMG
"The good progress made in getting women
into Non-Executive positions on Boards should
encourage us to continue the drive to see more
women executives leading businesses in the UK."
Melanie Richards CBE
7
Executive Summary
The drive by British business to
address the shortfall of women in FTSE 350
leadership has continued strongly in
2019, building on progress made in
33%
2020
by
Boards and
Executive Committee
& Direct Reports
previous years. Increasing stakeholder
attention from investors, consumers
and employees has fueled progress, Executive Committee & Direct Reports
The FTSE 100 has seen reasonable progress this
as has the ever-increasing pool of year with the number of women in the Combined
women with substantial leadership Executive Committee & Direct Reports increasing to
28.6% up from 27% last year.
experience. Visibility on those leaders
slow to harness the skills of women In a year when the turnover rate has increased to
and the shifting-mindset towards more 28%, the appointment rate of women has remained
low for a second year running at 36%. Four years
purpose-driven companies, will all help on, too few women are being appointed into senior
accelerate pace. leadership roles in the FTSE 100, with around two-
thirds of all available roles still going to men.
As a result too many companies remain well adrift
from the 33% target and unless the appointment rate
The Hampton-Alexander Review (the Review), which of women is nearer 50% in the coming year - that is
is an independent, voluntary and business-led half of all available roles going to women and half
initiative supported by Government, builds on the going to men - the FTSE 100 will not achieve the
success of its predecessor, the Davies Review. target by the end of 2020.
Ambition and Targets The FTSE 250 has seen a better year with the number
The scope of the Review captures over 23,000 of women on the Combined Executive Committee &
leadership roles in Britain’s largest listed companies. Direct Reports increasing to 27.9% in 2019, up from
It covers the board and extends down two leadership 24.9% last year.
layers below the board, making the UK’s voluntary
approach to improving women’s representation at the In a year where the turnover rate has remained
top table, arguably the biggest and most ambitious constant, the appointment rate of women has been
of any country. the big driver of progress. This has increased 5% this
year to 35%. However, consistent with the pattern in
In 2016 the Review set five key Recommendations the FTSE 100, two-thirds of all available roles are still
aimed at increasing the number of women in going to men.
leadership positions of FTSE 350 companies,
including a target of 33% by the end of 2020. This As a result too many companies remain well adrift
penultimate and fourth annual report assesses from the 33% target and unless the appointment rate
progress, shares emerging best practice and sets out of women to leadership roles increases to nearer 50%
current challenges. in the coming year - that is half of all available roles
going to women and half going to men - the FTSE
250 will not achieve the target by the end of 2020.
8
The findings in this report celebrate the outstanding FTSE Women Leaders
efforts of many, at the same time as providing a call-
to-action to those leaders who are dragging overall
progress downwards. Importantly, this report provides 35%
the facts to enable employees, consumers and other
stakeholders - to make fact-based choices aligned to 30%
their career expectations and values.
25%
Women on Boards
20%
The FTSE 100 has progressed in line with
15%
expectations and is close to the target with the
number of women on FTSE 100 Boards at 32.4% this 10%
year, up from 30.2% in 2018.
5%
Top quartile performance is now firmly established at
40% or more women on the board. In addition, half of
FTSE 100 FTSE 100 FTSE 250 FTSE 250
all FTSE 100 boards have already met or exceeded the Boards Combined Boards Combined
33% target, with a further twenty companies well on Exec.Comm & DRs Exec.Comm & DRs
their way to doing so. Another twenty-plus companies
2016 2017 2018 2019
at 25% or below, still have much work to do.
Outlook
The FTSE 250 has had its best year ever increasing
The good news is the FTSE 100 is likely to achieve
the number of women on FTSE 250 boards to 29.6%
the 33% target for Women on Boards in the coming
this year, up from 24.9% in 2018.
months ahead of the December 2020 deadline.
In a surprising break with trend, the FTSE 250 has
In a real step forward, just under a half of the FTSE out-performed the FTSE 100 this year. If this trend
250 - that is 111 boards, have already met or exceed continues and nearly half of all available appointments
the 33% target. This welcome step with 45 more go to women next year, the FTSE 350 will also meet
boards having reached or exceeded the target during the target by the end of 2020.
the year, and a further thirteen companies well on
their way to doing so. However, the significant other
However, the pace of change in leadership roles
half of the FTSE 250 index, still have work to do.
whilst moving forward, is too slow. If the FTSE 350
Combined Executive Committee & Direct Reports
Last year there were 74 “One & Done” boards in is to meet the 33% target by the end of 2020, a
the FTSE 350. We are pleased to report that number significant step-up in the appointment rate of women
markedly reduced to 39, including eleven new is required. Half of all available appointments will
entrants this year, but a disappointing 28 “One need to go to women in 2020. If current progress
& Done” boards for the second year running. continues, the FTSE 350 will miss their 33% target.
Given the evolved stage in the UK’s journey, this is
disappointing. The number of All-Male Boards is
In this report we celebrate the many stakeholders
down from five last year, to two in 2019. Still two too
that have taken robust action in support of the UK’s
many - and women in the Chair, SID or CEO roles
voluntary journey, and yet again call on many others
have increased, but only marginally so.
to play their part.
9
1. Executive Committee and Direct Reports
FTSE 100 Progress1
In 2019 there has been reasonable progress overall, however four years on too few
women are being appointed into senior leadership roles in the FTSE 100, with around
two thirds of all available roles still going to men. As a result many companies remain well
adrift from the 33% target.
The representation of women on the Combined Top Ten Best Performers
Executive Committee and Direct Reports has risen
from 27% to 28.6% with slightly better progress on the Combined
Executive Committee than the Direct Reports, on a stand- Executive
Company Sector
Comm &
alone basis. DRs
The total number of positions has marginally increased 1 Burberry Group Plc 61.3% Personal Goods
from 8882 to 8970 in the year, with the average size of the
Executive Committee and the Direct Report populations 2 Next Plc 53.9% General Retailers
staying the same. Gas, Water &
3 Severn Trent Plc 43.9%
Multiutilities
The turnover rate in the year has increased from 24% to Media &
4 ITV Plc 42.1%
28%, which could have been helpful although there has Entertainment
been a higher turnover of women than of men in the WM Morrison Food & Drug
5 41.4%
population, except at Executive Committee level. Supermarkets Plc Retailers
Pharmaceuticals
6 Astrazeneca Plc 40.3%
However, the appointment rate remains significantly & Biotechnology
skewed towards men with 68% of Executive Committee 7 Whitbread Plc 40.3% Travel & Leisure
appointments going to men and 64% of all available roles
in the year going to men. Four years on, this is not only 8
Land Securities
40% Real Estate
surprising - but disappointing. Group Plc
Pharmaceuticals
9 GlaxoSmithKline Plc 38.1%
& Biotechnology
The Highs
Intercontinental
10 37.8% Travel & Leisure
Meanwhile, it is evident many companies have been Hotels Group Plc
working extremely hard and with obvious results. This
year Burberry take the number one slot in the Top Ten Seven out of the Top Ten Best Performers this year also
Best Performers list with 61.3% women in their Combined appeared in the Top Ten in 2018, with Whitbread, Land
Executive Committee and Direct Reports team, ahead Securities and GlaxoSmithKline featuring for the first
of Next at 53.9% - both companies having increased the time.
number of women in senior leadership in the year and
both in the top slots for two consecutive years. See Appendix C for full FTSE 100 company rankings.
Drivers of Progress 2017 2018 2019
Appointment Rate of Women Up from 32% 35% 36%
Turnover Rate Up from 21% 24% 28%
Women on Exec.Comm Up from 205 232 262
Women Direct Reports Up from 1879 2165 2299
Women Combined Exec.Comm/DRs Up from 2084 2397 2561
All-Male Exec.Comm Variable 7 5 6
1. All FTSE 100 leadership data references as at 30th June 2019
10FTSE 100 Executive Committee Number of responses: 992
PERCENTAGE OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN 3
AVERAGE SIZE
OF EXECUTIVE
COMMITTEE 11
68%
TOTAL
23.1% 133
NUMBER OF
POSITIONS 1135 32%
63
TOTAL PERCENTAGE
NUMBER OF
WOMEN
262 OF WOMEN
NUMBER OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN
FTSE 100 Direct Reports Number of responses: 992
PERCENTAGE OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN 3
AVERAGE
79
SIZE OF
DIRECT
REPORTS
64%
TOTAL 29.3% 1419
NUMBER OF
POSITIONS 7835 36%
808
TOTAL PERCENTAGE
NUMBER OF
WOMEN
2299 OF WOMEN NUMBER OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN
FTSE 100 Combined Executive
Committee & Direct Reports Number of responses: 992
PERCENTAGE OF NEW APPOINTMENTS TO
AVERAGE JUNE 2019 GOING TO MEN AND WOMEN 3
SIZE OF
91
COMBINED EXEC
COMMITTEE
& DIRECT
REPORTS
28.6%
64%
TOTAL
1552
NUMBER OF
POSITIONS 8970 36%
871
TOTAL
PERCENTAGE
NUMBER OF
WOMEN
2561 OF WOMEN NUMBER OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN
2. In scope companies 99 excluding one Investment Trust which has no employees to declare
3. Period 1st July 2018 to 30th June 2019
111. Executive Committee and Direct Reports
FTSE 100 Progress
Congratulations to the 20 FTSE 100 companies that Top Ten Poorest Performers
have already reached the 33% target, many having
substantially exceeded the target and with truly gender Combined
Company Executive Sector
balanced leadership teams. Another 18 companies are Comm & DRs
looking on track to achieve the target by 2020, which
leaves a majority of companies with some way to go. 1 Fresnillo Plc 11.1% Mining
The FTSE 350 Sector Analysis in Appendix E shows
2 Imperial Brands Plc 11.7% Tobacco
overall performance by sector. Investment Trusts,
Personal Goods, General Retailers and Pharmaceuticals Health Care
& Biotechnology are the strongest performers with 3 NMC Health Plc 12% Equipment
& Services
35-40% women in their leadership teams. However,
with eight different sectors represented in the Top Ten
4 Ashtead Group Plc 12.5% Support Services
Best Performers table and seven sectors in the Top Ten
Poorest Performers, sector is clearly not the barrier to Household
Reckitt Benckiser
women’s progress that many would have believe. 5
Group Plc
12.8% Goods & Home
Construction
Progress to 33%
6 Glencore Plc 13.3% Mining
7 Carnival Plc 16.1% Travel & Leisure
18
Companies 8 Antofagasta Plc 16.7% Mining
9 3I Group Plc 16.9% Financial Services
61
Companies4
20
Companies British American
10 18.3% Tobacco
Tobacco Plc
All-Male Executive
Sector
Committees
Ashtead Group Plc* Support Services 2 Men
Already achieved Potential to achieve Some way
33% target 33% target by 2020 to go Carnival Plc Travel & Leisure 6 Men
Fresnillo Plc* Mining 4 Men
The Lows… Construction &
Melrose Industries Plc* Materials
12 Men
The list of Top Ten Poorest Performers - and those with
the most to do - is largely unchanged from last year. St James’s Place Plc* Life Insurance 8 Men
Ashtead Group, Fresnillo, Reckitt Benckiser, Imperial
Brands and British American Tobacco are in the poorest Spirax-Sarco Industrial
7 Men
Engineering Plc Engineering
performers list for the third year running, with only British
American Tobacco showing any real improvement.
Glencore and NMC Health both appear for the second
year running, both having reduced their representation of
women in the year.
4. In scope companies 99 excluding one Investment Trust which has no employees to declare
* For the second year running with Fresnillo Plc and St James’s Place for the third year running.
121. Executive Committee and Direct Reports
FTSE 100 Women in Functional Roles
This is the first year gender data has been collected on key functional roles from
FTSE 100 companies. Women are strongly represented in HR Director roles and to
some extent as Company Secretary, elsewhere there is still work to do.
GENERAL
COUNSEL
GENERAL
COUNSEL &
29 % FINANCE
COMPANY SECRETARY DIRECTOR5
37 % 15%
FTSE 100
FUNCTIONAL
ROLES
HUMAN
COMPANY RESOURCE
SECRETARY DIRECTOR
40 % CHIEF 66 %
INFORMATION
OFFICER
17 %
5. In the FTSE 100 approximately 90% of Finance Directors also sit on the Board of their company.
131. Executive Committee and Direct Reports
FTSE 250 Progress6
In 2019 there has been good progress overall with a 3% jump in the year of women in
FTSE 250 senior leadership roles. However four years on there are still too few women
being appointed – and similar to the FTSE 100 - around two thirds of all available roles
are still going to men. Very fast work is needed next year to reach the 33% target.
The representation of women on the Combined Top Ten Best Performers
Executive Committee and Direct Reports has increased
in the year to 27.9% from 24.9% in 2018 and minimal Combined
progress in 2017. Company Executive Sector
Comm & DRs
The total number of positions has decreased again this 1 Shaftesbury Plc 59.3% Real Estate
year to 11491, down around 400 leadership roles since
2018. To some extent this is impacted by an increasing Capital & Counties
2 50% Real Estate
number of Investment Trusts and again this year the Properties Plc
significant churn in the constituents of the FTSE 250
Index, with 35 companies having left the Index in the year 3 Card Factory Plc 48.6% General Retailers
and a compensating number joining, often for the first
time. 4 Cineworld Group Plc 46.8% Travel & Leisure
The average size of the Executive Committee and of the 5 TBC Bank Group 45.3% Banks
Direct Report populations remains constant, with the
turnover rate marginally up. However, the biggest driver Law Debenture Closed End
6 44.9%
Corporation Investments
of progress is the appointment rate, which has increased
5% this year to 35% but remains significantly skewed 7 Mitchells Butlers Plc 44.6% Travel & Leisure
towards men who have picked up 65% of all available
FTSE 250 leadership roles in the year.
8 Assura Plc 44.4% Real Estate
The Highs Scottish Investment
Equity
9 44.4% Investment
Trust Plc
Congratulations to Shaftesbury who take the number Instruments
one slot in the Top Ten Best Performers list for the third Closed End
10 Syncona Plc 43.8%
year running, increasing to 59.3% the representation of Investments
women in their Combined Executive Committee and
Direct Reports team. Five companies are in the Top Three companies are new entrants this year
Ten list for the second year running, Capital & Counties Cineworld, Law Debenture Trust and Scottish Investment
Properties, Card Factory TBC Bank, Mitchells Butlers and Trust and it is good to again have a mix of different
Assura. sectors represented. See Appendix D for full FTSE 250
company rankings.
Drivers of Progress 2017 2018 2019
Appointment Rate of Women Up from 28% 30% 35%
Turnover Rate Up from 20% 22% 23%
Women on Exec.Comm Variable 318 292 319
Women Direct Reports Up from 2666 2672 2884
Women Combined Exec.Comm/DRs Up from 2984 2964 3203
All-Male Exec.Comm Variable 47 45 38
6. All FTSE 250 leadership data references as at 30th June 2019
14FTSE 250 Executive Committee Number of responses: 1847
PERCENTAGE OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN8
AVERAGE SIZE
OF EXECUTIVE
COMMITTEE
9
73%
TOTAL
NUMBER OF
1720
18.6% 215
POSITIONS 27%
78
TOTAL
PERCENTAGE
NUMBER OF
WOMEN
319 OF WOMEN
NUMBER OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN
FTSE 250 Direct Reports Number of responses: 1847
PERCENTAGE OF NEW APPOINTMENTS TO
AVERAGE JUNE 2019 GOING TO MEN AND WOMEN8
53
SIZE OF
DIRECT
REPORTS
TOTAL 29.5% 64%
1457
NUMBER OF
9771
POSITIONS
36%
822
TOTAL PERCENTAGE
NUMBER OF
WOMEN
2884 OF WOMEN
NUMBER OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN
FTSE 250 Combined Executive
Committee & Direct Reports
Number of responses: 1847
AVERAGE
PERCENTAGE OF NEW APPOINTMENTS TO
SIZE OF JUNE 2019 GOING TO MEN AND WOMEN8
62
COMBINED EXEC
COMMITTEE
& DIRECT
REPORTS
65%
TOTAL
NUMBER OF
11491
27.9% 1672
POSITIONS 35%
900
TOTAL PERCENTAGE
NUMBER OF
WOMEN
3203 OF WOMEN
NUMBER OF NEW APPOINTMENTS TO
JUNE 2019 GOING TO MEN AND WOMEN
7. In scope companies 184 excluding 58 Investment Trusts which have no employees to declare, and 7 New to Index companies and BCA Marketplace who chose not to respond.
8. Period 1st July 2018 to 30th June 2019.
151. Executive Committee and Direct Reports
FTSE 250 Progress9
Congratulations to the 52 FTSE 250 companies that have The Lows…
already reached the 33% target, many having substantially
The Lows come in several guises. The Top Ten Poorest
exceeded the target and with truly gender balanced
Performers, half of which appear in the list for the second
leadership teams. It is apparent these companies have
year running, Hill Smith Holdings, Renishaw, Hochschild
been working hard for some time to recruit, retain and
Mining, Synthomer and Hunting are all making little or
promote women in leadership. There are a further 19
no progress. The All-Male Executive Committees - which
companies on-track to achieve the target by 2020, which
surprisingly are not that rare - have reduced from 45 to
leaves over 100 companies with some way to go.
38 this year and there is one company that has chosen
two years running – and uniquely in the FTSE 350 – not to
Progress to 33% respond in any way, shape or form at all!
All-Male Executive Committees
19
Companies
AJ Bell Plc Hunting Plc
BBGI Sicav SA IMI Plc*
Big Yellow Group Plc Intermediate Capital Group Plc*
113
Companies10
52
Companies
Bovis Homes Group Plc* LondonMetric Property Plc*
Caledonia Investments Plc* Page Group Plc*
Centamin Plc* Petrofac Ltd*
Clarkson Plc* Playtech Plc*
CLS Holdings Plc* Plus500 Limited
Countryside Properties Plc Premier Oil Plc
Already achieved Potential to achieve Some way Crest Nicholson Holdings Plc* Renishaw Plc*
33% target 33% target by 2020 to go
Daejan Holdings Plc* Savills Plc*
Energean Oil Gas Plc Sirius Minerals*
Top Ten Poorest Performers
Ferrexpo Plc* Spectris Plc
Combined Galliford Try Plc* Sports Direct International Plc
Company Executive Sector
Comm & DRs Grafton Group Plc Stagecoach Group Plc
1 Petrofac Ltd 6.3% Oil & Gas Great Portland Estates Plc* Syncona Ltd*
Greene King Plc* Synthomer Plc*
Hill Smith Industrial
2 6.4% GVC Holdings Plc TI Fluid Systems*
Holdings Plc Engineering
Electronic Hochschild Mining Plc* Workspace Group Plc*
3 Renishaw Plc 7.2% & Electrical
Equipment
Hochschild Mining The one company that chose not to respond
4 8.1% Mining
Plc for a second year running
5 Synthomer Plc 8.1% Chemicals BCA Marketplace Plc
6 Hunting Plc 11.1% Oil & Gas
Construction &
7 Polypipe Group Plc 11.1%
Materials
Household
Crest Nicholson
8 12.5% Goods & Home
Holdings Plc
Construction
Industrial
9 RHI Magnesita Plc 12.9%
Engineering 9. All FTSE 250 leadership data references as at 30th June 2019
10. In scope companies 184 excluding 58 Investment Trusts which have no employees to declare,
7 New to Index companies and BCA Marketplace Plc who chose not to respond.
10 Wizz Air Holdings Plc 13.2% Travel & Leisure * Denotes companies with All-Male Executive Committees for a second year running
161. Executive Committee and Direct Reports
FTSE 250 Women in Functional Roles
This is the first year gender data has been collected on key functional roles from
FTSE 250 companies. Women are strongly represented in HR Director roles and
as Company Secretary, elsewhere there is work to do.
GENERAL
COUNSEL
GENERAL
COUNSEL &
35% FINANCE
COMPANY SECRETARY DIRECTOR11
33% 16%
FTSE 250
FUNCTIONAL
ROLES
HUMAN
COMPANY RESOURCE
SECRETARY DIRECTOR
54 % CHIEF 63%
INFORMATION
OFFICER
12%
11. In the FTSE 250 approximately 90% of Finance Directors also sit on the Board of their company.
171. Executive Committee and Direct Reports
Challenges and Outlook
The robust data set builds year-on-year and shows clearly those moving forward and
those going nowhere, or backwards. The gap between those working hard to shift the
dial and those doing very little has never been more obvious.
Too few Women in Top Jobs Outlook
A sharper focus is needed by companies to understand Almost all metrics have moved forward in the year and
what is happening in an appointment process that results progress has been reasonable, stronger in the FTSE 250
in so very few women being appointed into the CEO than the FTSE 100, but slow overall.
role. The number of CEOs that are women is unchanged
in many years and the UK is not unique, other countries If the FTSE 350 leadership teams are to stand a chance of
share this problem.12 meeting the 33% target by the end of 2020, a significant
step-up in the appointment rate of women is required. At
Although we are seeing more women coming through in least 50% of all available appointments in 2020 will need
the key functional roles, only in the HR Director, and to to go to women. If current progress continues through
a lesser extent the Company Secretary roles are women next year, the FTSE 350 will miss their 33% target.
equally represented. Women represent around 15% of all
Finance Director roles in the FTSE 350 and 12-17% of all FTSE 100 Forward Look
Chief Information Officers.
35% 34.1%
Majority of Appointments to Men 33%
31% 30.1%
Many companies have a significant amount of work to do
28.6%
to catch-up and despite all of the learning and mound 29%
27%
of empirical research on the business case, financial and
27% 25.2%
operational benefits of diverse teams, the majority of
appointments in leadership teams in the FTSE 350 are still 25%
going to men. 23%
21%
In the next year the turnover needs to remain relatively Historic performance
high and one in every two available appointments in 19%
Same rate of progress
FTSE 350 leadership need to go to women. Currently 17% Appointment rate of 50%
around 65% of all leadership appointments are going
15%
to men, on FTSE 100 Executive Committees this rises 2017 2018 2019 2020
to 68% and even higher to 73% on FTSE 250 Executive
Committees.
FTSE 250 Forward Look
The Voices of Men 35%
32.9%
Gender diversity and inequality in the workplace are the 33%
business issues of our time. Everyone but in particular 31% 29.5%
men, should take time to read and inform themselves on
29% 27.9%
gender and women’s inequality at work.
27%
24.9%
Men in large numbers need to find their voice and join 25% 24%
the current conversation. Until men can understand and
articulate the complex and compounding barriers that 23%
women face, the gaps and how to fix them, they will 21%
remain adrift from the debate, and the solution. Historic performance
19%
Same rate of progress
17% Appointment rate of 50%
15%
12. See Page 38.
2017 2018 2019 2020
18We are starting to see a new generation of
women executives move into very senior
positions - not before time. That should
encourage others to believe they can
aspire to the top jobs.
Sir Howard Davies
Chair
Royal Bank of Scotland Plc
191. Executive Committee and Direct Reports
Leading by Example
Shaking off the cultural norms The commitment we have at the highest levels of
our business to inclusion and diversity was pivotal to
around parental leave this bold change. Women currently make up around
40% of our Executive Committee, and our CEO Ivan
Menezes is an active advocate of gender equality.
True gender equality at work requires Leaders must own this agenda.
fundamental changes to working
practices, including a shake-up of the We were overwhelmed by the positive response
policies and cultural norms around parental leave. from our 28,400 employees. However, we know there
is work to do to challenge cultural norms around
In April 2019 we announced that all parents paternity leave. Role models are crucial. I’ve been
employed by Diageo in the UK are eligible for 52 heartened to see several men, including those in
weeks parental leave, with the first 26 weeks fully senior roles, take us up on the policy and proudly
paid, regardless of gender or how they become a share their experiences.
parent. This is open to all our 4,500 UK employees,
including 3,100 in primarily manufacturing roles. Ensuring both men and women are supported to
experience the joy of raising a young family, while
In May we extended 26 weeks fully paid maternity continuing to thrive at work is better for business and
leave to all female employees globally and set for society at large.
a global minimum standard of four weeks fully
paid paternity leave. In a majority of our markets –
Mairéad Nayager
including Europe, North America, Thailand, Russia,
Chief HR Officer
Colombia and Australia, we’ve moved beyond this to
26 weeks fully paid paternity leave.
Accelerating women leaders This has involved placing talented women without
previous P&L experience into roles which would
at the most senior level address that gap and those with business experience
into functional roles, to disrupt traditional, siloed
career paths into either functional or business
Having a leadership team with a leadership. Where required, the cohort was also
diversity of perspectives is proven engaged in a programme of tailored leadership
to drive greater innovation. For that coaching and development.
reason, a strategic priority for us at
Lloyds Banking Group in recent years Every vacancy for an executive role is managed
has been addressing the challenge of closely by the Group CEO who expects to receive an
too few women coming through our explanation if any shortlist does not contain a female
traditional executive leadership pipeline. candidate. Our CEO also personally meets with the
last two candidates for every role, one of whom is
To tackle this we began working closely with our most expected to be a woman.
senior women, with an initial cohort of twenty which
was later expanded to around one hundred; targeting In less than three years, thirty-five per cent of the
specifically the women with the potential to reach original cohort have achieved roles on the Executive
Group Executive Committee (GEC) or direct report Committee or as direct reports to the Executive
to GEC roles within one to two years. Sponsored by Committee, and 33% of our combined Executive
members of the Board, we met with each individual Committee and Direct Reports are women. The
woman to understand her career ambitions, help programme has given us not only a strong pipeline
define her proven skillset, and identify those future of women executives today, but a proven strategy to
roles that would build the breadth required for an keep it that way for the future.
upward move.
Fiona Cannon
Group Director, Responsible Business,
Sustainability and Inclusion
20Flex my Day - reflecting our The feedback is that it has been particularly helpful
to working mums coping with the pressures of school
customer base drop off and pick up. We want everyone to feel
supported when balancing work-life pressures and feel
strongly that women, in particular, should not feel at a
As a retailer we are very aware of the disadvantage when it comes to career progression.
benefits that a diverse workforce at
all levels brings. We are therefore A large proportion of our customer base are women
proactive in our efforts to achieve therefore it is vitally important that women are in the
gender balance across the business. We insist on a position to represent and influence any decisions
balanced shortlist when recruiting. We review our that impact our customers. This starts at leadership
internal development programmes and mentoring level and we are proud to have a healthy balance at
opportunities to ensure there is a fair representation senior management level. We want to ensure that the
based on our gender position in the actual workforce right people are in the right roles so that we continue
at that level. to have an appropriate voice. This goes beyond
gender and includes people of differing ages and
Despite our head office being relatively small in backgrounds who all provide unique perspectives that
terms of supporting 1,000 stores, with a team of help to drive the business forwards.
approximately 300 people we are flexible with
working hours. Taking action on suggestions from our We have a long way to go – but in order to ensure
Employee Forum, this year we launched a 'Flex my that our business continues to be successful we are
Day' policy. The policy is designed to allow colleagues committed to having a diverse workforce including
to flex their day to meet their work and home life gender, age, nationality, education, and background.
needs but without needing to make a permanent
change to their working hours.
Karen Hubbard
CEO
Women@Brewin: It’s listening to As a result of these conversations and our annual
employee engagement survey we have made a
employees and taking action that number of changes. These include enhancing shared
makes the difference parental leave and pay so all employees have the
same entitlement regardless of gender and ensuring
the panel responsible for promotions in our wealth
management business is gender balanced. We’re
At Brewin Dolphin we have been
also introducing coaching for employees taking leave
working to create a truly inclusive
to have a child, both before they go on leave and
culture. This has included a focus
when they return. Our goal is to support women and
on increasing gender balance at senior levels and
men to have a smooth and successful transition both
importantly, has also created conversation about the
out of, and on return to, the workplace.
pipeline. I want to ensure that this focus is mirrored
across all levels of our organisation, particularly in
areas where progress towards gender balance over No single initiative will make the difference that’s
recent years has been slower than at senior levels. needed. We will continue to listen to our employees
and put measures in place that will create a level
playing field for everyone, so that those who want to
One of our big successes has been our Women@
progress in their career can do so without barriers or
Brewin network. We hold roundtable discussions
bias.
where colleagues have been asked to share their
views on career progression and how we can better
enable them as an organisation. It’s important that David Nicol
we create an inclusive culture where employees can CEO
provide us with honest feedback. These small group
discussions have provided the opportunity for women
and men colleagues to have deeper conversations
and encouraged the continued sharing of ideas.
211. Executive Committee and Direct Reports
Leading by Example
#thisisme, championing inclusion celebrated eight colleagues, doing the things that
make them unique.
at Direct Line Group
As a result of our ongoing initiatives, today, 91% of
our people feel like they can bring all of themselves
'Bring all of yourself to work' is one to work and 89% say our business is a highly inclusive
of our values at Direct Line Group place to work.
and we're working hard to create an environment
where people can be their real and authentic selves. It’s this culture that has cemented the foundation for
us to take positive gender diversity action to attract,
Last summer, we started a movement to showcase grow and retain talented women, such as:
the uniqueness of our people – as the culmination
of our efforts to build a culture where diversity isn't • Language decoders – to ensure job adverts
only valued, but respected and celebrated. Under don't alienate women, especially in roles typically
the banner of #thisisme, we asked our people to dominated by men
share what made them 'them’, on our internal social
network. • Gender balanced shortlists – enabling us to build a
sustainable pool of women leaders of the future
Propelled by our senior leaders and diversity network • Our Thrive network – set up by women to provide
champions, we generated thousands of posts from inspirational stories, tools and guidance on how to
colleagues, sharing what made them unique. People be the best they can be
felt permission to open up and shared everything
from, ‘I am a wife to my wife’ to ‘I am a worrier’ to As a result, we’ve significantly increased the
‘I am bipolar’ and everything you can think of in proportion of women applying and being hired
between. into management roles and are seeing this trend
continuing.
It heralded a new era of openness for our business –
and to capture the continued energy and momentum Penny James
behind the campaign, we launched a short film, CEO
'We are DLG’, earlier this year. This showcased and
Designing an inclusive path All colleagues will have completed unconscious
bias training by the end of this year and we devote
to leadership time to teaching and role modelling inclusive
leadership as part of our Leadership Development
Programme. This is a three day immersive course for
Being recognised as the best all our leaders that is supplemented by one-to-one
performer in the FTSE100 for the development coaching over the course of six months
second consecutive year is a proud to help them implement what they have learned.
moment for all of us at Burberry. This position reflects We also provide courses designed to help our
Burberry at its best: an inclusive, supportive, dynamic colleagues learn early in their career how to be more
company where our colleagues can achieve their self-aware and supportive as they start to develop
ambitions and bring their whole selves to work every their own leadership style, and as part of our focus on
day. wellbeing, we have partnered with the Samaritans to
run workshops on how to best listen to and help one
Like many companies, Burberry has programmes another.
in place to stimulate and maintain our pipeline of
future leaders, and our framework has an emphasis At Burberry, we believe this strong commitment to
on inclusion: recognition and respect of diversity of inclusivity, and designing the path to leadership
thought, of approach and of experience. We need to around it, will help us continue to support and
continue to challenge ourselves to find new ways to develop more women to become great leaders and
develop our next generation of women leaders, and embed an environment of creativity and belonging,
are committed to ensuring we nurture the aspirations where all our colleagues can thrive.
of all our people. Erica Bourne
Chief People Officer
22Our research into workplace culture
highlights that toxic work environments
are prevalent and stifling. Promoting
leaders who role model inclusive
behaviours and rewarding them for doing
so, creates change.
Julia Gillard AC
Chair of Global Institute for Women’s Leadership
& former Primer Minister, Australia
23Experiences of Workplace Culture
To build a pipeline of women leaders, companies need to know they are creating
environments in which women, and all employees want to stay and can thrive. A
focus on diversity needs to go side-by-side with a focus on inclusion – ensuring
everyone feels valued in the workplace.
Last year the Hampton-Alexander report highlighted Board & All
the experiences of everyday sexism for women. This Response Executive Others
year research by the Global Institute for Women’s Committee Sampled
Leadership at King’s College London has added
Women Respondents only
to that evidence base with research and insights
on inclusive workplace cultures and behaviours to That someone at work had made
provide guidance on how to improve this. The focus disrespectful or insulting remarks 33% 38%
about them
of research was around workplace behaviours that are
sometimes known as ‘micro-aggressions’, sometimes They had been shouted at, or
24% 29%
sworn at by someone at work
as ‘incivility’. Examples range from the relatively
benign – being interrupted or talked over, to the That someone at work had
ignored or failed to speak to
more serious – insults, swearing or angry outbursts them or given them the "silent
34% 52%
treatment".
Experiences of incivility Being targeted by angry outbursts
or"temper tantrums” by someone 38% 39%
King’s College surveyed 348 senior women and men at work."
to ask about their experiences in the last two years
of workplace culture and incivility. Of those surveyed Respondents were also asked about their job
272 were women (78%) and 74 (22%) were men, and 2 satisfaction and how often they thought about
preferred not to say. quitting their job. People who had experienced
incivility from seniors “often” or “many times” were
Overall the women sampled had more experiences of more likely to think about quitting their job and had
incivility than the men. In addition, women who were lower job satisfaction compared to people who had
either at Board or Executive Committee level were never or very rarely experienced incivility.
more likely to have experienced incivility than men at
Board of Executive Committee level. “I have, on more than one occasion,
given correct advice that has been
Response Women Men ignored and belittled. I have then drafted
Board or Executive Committee
the same advice in an email and asked
Respondents only a male colleague to send it to senior
That someone at work had made management, at which point it has been
disrespectful or insulting or remarks 33% 13%
about them
praised as the obvious route.”
They had been shouted at, or sworn at
by someone at work
23% 16% Fostering an inclusive workplace culture
The survey also asked how well workplaces were
That someone at work had ignored or
failed to speak to them or given them 34% 23% doing at fostering an inclusive working culture. Board
the "silent treatment" or Executive Committee level respondents were more
Being targeted by angry outbursts or likely to perceive their current workplace climate as
"temper tantrums” by someone at 39% 23% one that fosters inclusion, compared with more junior
work. members.
However these senior level women were slightly less Overall men were slightly more likely than women to
likely to have experienced incivility than their more think their workplace fostered an inclusive working
junior colleagues. culture, this was particularly evident when looking at
senior men compared to senior women. In addition,
those who thought their company was better at
24didn't hold this position, or have the power
Response Women Men
to influence the DNA of the company, I’m not
Disagree sure I would have as much loyalty”
My workplace has a culture in which
employees appreciate the differences that 19% 6% Track and Measure Progress
people can bring
In order to create a climate that is inclusive and respectful
Top management believe problem solving it’s essential that you establish a baseline to measure
is improved with input from different roles, 30% 15% employees’ experiences of workplace culture and keep
ranks, and functions.
track of key indicators over time. Information from regular
employee surveys can help identify where problem points
fostering an inclusive workplace culture, were also most are. But beware loaded questions and ineffectual follow
likely to report greater job satisfaction, and less likely to ups, which can only make issues worse by sending the
think about leaving. signal that you’re not interested in making change. Make
use of well- tested measures, such as the workplace
Incivility is an organisational rather than incivility scale and climate for inclusion scale used in this
an individual issue study, and make sure there is an effective follow-up.
It’s clear that tackling uncivil behaviour in the workplace
and fostering an inclusive workplace culture is a win- “My workplace has an annual employee
win for companies and employees – but what do senior survey. However the questions are phrased to
leaders and teams need to know to harness these ensure positive responses and the opinions of
benefits?
employees are given lip service - no positive
It can be tempting to assume that uncivil behaviour change is ever effected as a result of the
is simply the fault of the individual perpetrators, but feedback.”
organisational research shows time and time again that
workplace culture plays a key role. In addition to making
Take a Positive, Whole-team Approach
sure there are consequences for poor behaviour, we
should also look at workplace culture. Risk factors include Where problems are identified, whole-team based
work overload and stress and a team culture that permits approaches which focus on encouraging positive
or even rewards such behaviour. behaviours can help to make change. One successful
model involves whole teams coming together regularly
to establish shared norms and standards for behaviours,
“The openness and appreciation of areas of concern and plans for action, which are then
differences is largely led by the local divisional evaluated on a regular basis, rather than a voluntary
or unit leader. If they welcome diversity group of interested parties.
and encourage openness themselves, it is
more commonly mirrored in their people’s Tips for Leaders
approach.” • Role-model the behaviour you wish to see in an
inclusive workplace
Leaders set the tone • Reward behaviour you want to champion
No-one is more influential in setting the norms and values • Ensure workload allocation is appropriate to mitigate
of an organisation than its leaders. Leaders play a key role stress - a trigger for workplace incivility
in signalling what behaviours are acceptable . As well as
setting an example, current leaders can nurture respectful Tips for Teams
behaviours throughout the organisation by rewarding the • Participate in regular, team-wide employee surveys to
behaviours they want to champion. identify where problems are in workplace culture. This
data will act as a catalyst for change.
“I am fortunate to hold a leadership position • Using the results of surveys, bring together the whole
in my company, so feel empowered to make team to collectively raise areas of concerns and to
a difference to company culture. I see it as create plans of action to tackle incivility.
core to my role to create a safe space where With thanks to Professor Rosie Campbell and team at
my team feel able to be their best selves. If I King's College, London.
25Where there are hostile workplace cultures
we can’t simply ask women to lean in and
try harder to reach leadership positions.
Instead we need to ensure undermining
behaviour is called out - not rewarded
- and we need to build inclusive
environments where colleagues can raise
challenges confidently, diverse leaders can
flourish and everyone can produce their
best work.
Professor Rosie Campbell
Director of the Global Institute for Women’s Leadership
King’s College London
262. Women on Boards
341
FTSE 100
32.4%
20
49
30.2 % FTSE 250
582
2018
29.6 %
60
111
27.7%
2017
26.6 %
2016
24.9 % FTSE 350 923
2018
30.6 %
80
160
22.8%
2017
21.5%
2016
Number of Women on Boards
26.7%
2018
Number of Women SIDs on Boards
24.5%
Number of Companies with 33% 2017
or more Women on the Board
23%
2016 As at October 2019
272. Women on Boards
FTSE 100 Progress13
The representation of women on the boards of FTSE 100 companies has reached 32.4%
- close to achieving the 33% target ahead of the 2020 deadline – and with more women
than ever serving on the boards of the UK’s biggest public companies.
The FTSE 100 index now stands at 32.4% up from 30.2% Progress to 33%
in 2018, with 341 women on FTSE 100 boards out of a
total of 1052 directorships. 100
Congratulations to the 49 FTSE 100 companies that
have already reached the 33% target, many having
31
Companies
80
substantially exceeded the target and benefitting from
truly gender balanced boards. Another 20 companies are
currently around 30% and looking on-track to achieve the
target by the end of 2020. This leaves around one third of
companies in the FTSE 100 still with some way to go.
60 20
Companies
In a year where about half of the companies in the index
40
have increased the representation of women – some
substantially so - companies just standing still have
found themselves slipping back many places in the
rankings. See Appendix D. The biggest risers in the year 20
49
Companies
are Standard Life Aberdeen, Royal Bank of Scotland,
Schroders, CRH Plc and London Stock Exchange.
0
Those companies having decreased their representation Number of companies
of women in the year have fallen down the rankings
significantly, some by fifty places or more. The biggest Already achieved Potential to achieve Some way
fallers in the year are National Grid, Rio Tinto and NMC 33% target 33% target by 2020 to go
Health Plc.
The number of women SIDs continues to inch up, whilst
The key drivers of progress are largely unchanged in the women in Chair and CEO roles remains stubbornly - and
year, with a small increase in the turnover rate to 18% and disappointingly flat.
constant appointment rate at 35%.
Drivers of Progress 2017 2018 2019
Appointment Rate of Women Variable 30% 35% 35%
Turnover Rate Up from 16% 16% 18%
Women CEOs Flat 6 6 6
Women Chairs Variable 6 7 5
Senior Independent Directors Up from 14 18 20
“One & Done” Boards Down from 4 1 1
13. All FTSE 100 Women on Boards data14th October 2019
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